This Question: 1 pt 23 of 30 (3 completo) This Te An investor holds a Ford...

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Answer 1

Answer #1

Face Value of the bond = $5000

Annual coupon rate = 5.5%

The bond pays coupons semiannually.

Semiannual coupon payment = (Annual coupon rate*Face Value)/2 = (5.5%*5000)/2 = 137.5

The bond's maturity is 01/15/2029. On the maturity date, the bond will pay the sum of Face value and a semi-annual coupon

Cash flow on 01/15/2029 = $5000 + $137.5 = $5137.5

Investor will receive $5137.50 on 01/15/2029

Answer -> $5137.50 (Option B)

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Answer 2

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